Getting started in real estate investing questions from a newby
I recently got a series of questions from a new investor. I get a lot of questions that look like these, and to be honest, he asked a great group of questions and I thought I would share with the group. His queations are in black, my answers are in red.
Questions on Processes: Getting started in real estate
1. Should we try to find someone to shadow as they undergo an actual wholesale deal, so we can see the process in motion in the real world for ourselves, and/or have someone mentor us step-by-step for our first wholesale deal to make sure we’re doing everything right?
Shadowing someone is a really good idea, I can do that for you. A bit of hand holding will help your confidence. The process is simple. Wholesalers buy and one price and sell at some price that is greater than the first one. The math couldn’t be easier. The safest way to wholesale property is to use an option contract, an option contract gives you the option but not the obligation to buy a house. With that contract signed and registered, you can then decide if you want to keep the property for yourself or pass it on to a buyer. This buyer will either be another real estate investor or someone who want a house for themselves. There are a few exit strategies that you can use here, but that is another topic.